Abstract: As regards the nature of Australian English, it is generally believed that it is a language transported or transplanted. The present paper, based on the language contact theory, analyzes the origin of Australian English in the light of transplanting, borrowing and coining and discusses its origin. It holds that Australian English is a diversified language developed from British English and borrowings from Aboriginal languages, immigrant languages and American English as well as coinages that suit the unique Australian environment. Australian English well reflects the language change as impacted by language contact.